CPFA ACTUAL EXAM QUESTIONS AND
COMPLETE STUDY GUIDE 2026
▶ All of the following documents are updated annually, EXCEPT:
a. 404(a)(5) participant fee disclosure
b. Plan document
c. Qualified default investment alternative notice
d. Safe Harbor Matching 401(k) notices. Answer: b. Plan document
▶ All of the following are consequences of fiduciary breaches, EXCEPT:
a. A fiduciary should make good on any losses caused by his or her
fiduciary breach.
b. A fiduciary should restore any profits to the plan that had resulted due to
his or her fiduciary breach.
c. The corporate veil protects fiduciaries from personal liability.
d. A fiduciary who has committed a breach may be removed and prohibited
against serving as a fiduciary in the future.. Answer: c. The corporate veil
protects fiduciaries from personal liability.
▶ All of the following are best practices for determining the reasonableness
of plan fees, EXCEPT:
a. Determine whether each individual expense is reasonable.
b. Research revenue sharing arrangements to determine the underlying
cost of services.
,c. Determine whether any expenses paid to fiduciaries have violated the
conflict of interest rules.
d. Owner-driven plans are not required to determine the reasonableness of
plan fees due to their limited personnel and financial resources.. Answer:
d. Owner-driven plans are not required to determine the reasonableness of
plan fees due to their limited personnel and financial resources.
▶ All of the following fees may be paid from the plan, EXCEPT:
a. TPA fee for Form 5500 preparation
b. Fee associated with union negotiations regarding retirement plan
benefits
c. Recordkeeper fee for maintaining participant accounts
d. Investment advisory fee. Answer: b. Fee associated with union
negotiations regarding retirement plan benefits
▶ All of the following are parties-in-interest to the STU, Inc. Profit Sharing
Plan, EXCEPT:
a. Brian, who is a plan participant and the president's brother
b. XYZ Inc., who is seeking to acquire STU, Inc.
c. Independent auditor of the Plan's financial statements
d. Legal counsel to the Plan. Answer: b. XYZ Inc., who is seeking to
acquire STU, Inc.
▶ ERISA defines the following as plan fiduciaries, EXCEPT:
a. Plan Sponsor
b. Plan Accountant
c. Plan Trustee
d. Plan Administrator. Answer: b. Plan Accountant
, ▶ All of the following describe non-fiduciary individuals performing
ministerial functions, EXCEPT:
a. A benefits administrator prepares the summary plan description.
b. A human resources director decides to fully vest a terminated employee
because of his excellent work history
c. An ERISA attorney updates a client's plan document to comply with
current law.
d. A payroll manager prepares the weekly deferral deposit and forwards it
to the plan provider.. Answer: b. A human resources director decides to
fully vest a terminated employee because of his excellent work history
▶ Which statement regarding service providers is TRUE?
a. A TPA performs annual compliance testing.
b. A recordkeeper has the legal obligation to provide an interpretation of a
plan provision.
c. An accountant processes the "money out" for a participant withdrawal.
d. A plan advisor is responsible for drafting annual safe harbor notices..
Answer: a. A TPA performs annual compliance testing.
▶ All of the following are important factors when selecting a service
provider, EXCEPT:
a. Service provider's financial stability
b. Experience with plans of similar size and complexity
c. Willingness to provide revenue sharing to offset plan fees
d. Qualifications of personnel that will service plan. Answer: c. Willingness
to provide revenue sharing to offset plan fees
▶ Which statement regarding bundled service arrangements is TRUE?
COMPLETE STUDY GUIDE 2026
▶ All of the following documents are updated annually, EXCEPT:
a. 404(a)(5) participant fee disclosure
b. Plan document
c. Qualified default investment alternative notice
d. Safe Harbor Matching 401(k) notices. Answer: b. Plan document
▶ All of the following are consequences of fiduciary breaches, EXCEPT:
a. A fiduciary should make good on any losses caused by his or her
fiduciary breach.
b. A fiduciary should restore any profits to the plan that had resulted due to
his or her fiduciary breach.
c. The corporate veil protects fiduciaries from personal liability.
d. A fiduciary who has committed a breach may be removed and prohibited
against serving as a fiduciary in the future.. Answer: c. The corporate veil
protects fiduciaries from personal liability.
▶ All of the following are best practices for determining the reasonableness
of plan fees, EXCEPT:
a. Determine whether each individual expense is reasonable.
b. Research revenue sharing arrangements to determine the underlying
cost of services.
,c. Determine whether any expenses paid to fiduciaries have violated the
conflict of interest rules.
d. Owner-driven plans are not required to determine the reasonableness of
plan fees due to their limited personnel and financial resources.. Answer:
d. Owner-driven plans are not required to determine the reasonableness of
plan fees due to their limited personnel and financial resources.
▶ All of the following fees may be paid from the plan, EXCEPT:
a. TPA fee for Form 5500 preparation
b. Fee associated with union negotiations regarding retirement plan
benefits
c. Recordkeeper fee for maintaining participant accounts
d. Investment advisory fee. Answer: b. Fee associated with union
negotiations regarding retirement plan benefits
▶ All of the following are parties-in-interest to the STU, Inc. Profit Sharing
Plan, EXCEPT:
a. Brian, who is a plan participant and the president's brother
b. XYZ Inc., who is seeking to acquire STU, Inc.
c. Independent auditor of the Plan's financial statements
d. Legal counsel to the Plan. Answer: b. XYZ Inc., who is seeking to
acquire STU, Inc.
▶ ERISA defines the following as plan fiduciaries, EXCEPT:
a. Plan Sponsor
b. Plan Accountant
c. Plan Trustee
d. Plan Administrator. Answer: b. Plan Accountant
, ▶ All of the following describe non-fiduciary individuals performing
ministerial functions, EXCEPT:
a. A benefits administrator prepares the summary plan description.
b. A human resources director decides to fully vest a terminated employee
because of his excellent work history
c. An ERISA attorney updates a client's plan document to comply with
current law.
d. A payroll manager prepares the weekly deferral deposit and forwards it
to the plan provider.. Answer: b. A human resources director decides to
fully vest a terminated employee because of his excellent work history
▶ Which statement regarding service providers is TRUE?
a. A TPA performs annual compliance testing.
b. A recordkeeper has the legal obligation to provide an interpretation of a
plan provision.
c. An accountant processes the "money out" for a participant withdrawal.
d. A plan advisor is responsible for drafting annual safe harbor notices..
Answer: a. A TPA performs annual compliance testing.
▶ All of the following are important factors when selecting a service
provider, EXCEPT:
a. Service provider's financial stability
b. Experience with plans of similar size and complexity
c. Willingness to provide revenue sharing to offset plan fees
d. Qualifications of personnel that will service plan. Answer: c. Willingness
to provide revenue sharing to offset plan fees
▶ Which statement regarding bundled service arrangements is TRUE?
